factual

What must a Craters & Freighters franchisee obtain prior to opening their franchised business?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.

  • 4.2 Lease of Premises. Franchisee acknowledges that Franchisor must approve the lease, and any renewal of such lease (collectively, "Lease") for the Premises of the Franchised Business prior to executing such Lease. Franchisor's approval of such Lease cannot be unreasonably withheld or delayed. Franchisee agrees to use Franchisee's best efforts to incorporate into the Lease the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum, attached hereto as Attachment D to this Agreement. Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time. Franchisee agrees to deliver a copy of the executed Lease to Franchisor within fifteen (15) days after the execution of such Lease.
  • 4.3 Development of the Premises. Franchisee will be solely responsible for developing and furnishing the Premises. Franchisor will provide to Franchisee mandatory or suggested specifications for the premises of a Craters & Freighters Franchised Business including but not limited to those involving dimensions, design, image, interior layout, décor, fixtures, Equipment, computer hardware and software, signs, and color scheme which Franchisor has approved based on its standards for quality, design, appearance, function, and performance. Franchisee must provide Franchisor with the construction plans for the Premises ("Construction Plans"), and receive Franchisor's written approval of such Construction Plans, before construction of the Premises commences. Franchisee will, upon request by Franchisor, submit to Franchisor all revised or "as

built" Construction Plans during the construction of the Premises. Additionally, Franchisee is solely responsible, at Franchisee's own expense, for all of the following relating to developing and furnishing the Premises: (i) securing all required financing; (ii) obtaining all required permits and licenses; (iii) complying with all required permits and licenses; (iv) complying with all applicable laws and the Lease; (v) constructing all required improvements and decorating the Premises in compliance with the approved Construction Plans and then-current specifications of Franchisor relating to approved brands, types, or models;

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee must fulfill several obligations before opening their franchised business. Specifically, Craters & Freighters requires the franchisee's owner(s) and designated manager to participate in and complete the initial training program to the franchisor's satisfaction. This training covers the operation of a Craters & Freighters franchise.

Additionally, the franchisee must secure approval from Craters & Freighters for the lease of the premises. This approval, while necessary, does not act as a guarantee of the business's success or profitability at that location. The franchisee is also responsible for developing and furnishing the premises according to Craters & Freighters' specifications, which include dimensions, design, layout, décor, and required equipment and software.

Before starting construction on the premises, the franchisee must submit construction plans to Craters & Freighters and receive written approval. These requirements ensure that each Craters & Freighters franchise adheres to the brand's standards and operational guidelines from the outset. Failing to meet these pre-opening obligations could delay the launch of the franchise or potentially lead to non-compliance issues with the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.